Council approves deals with 3 unions

Pay, benefit cuts save $43 million

San Diego 
Firefighters will give up nearly $500 in monthly pay and benefits and lower-paid workers, such as janitors, will lose about $234 under labor deals the San Diego City Council approved.

The council imposed contracts on two unions last week and unanimously approved deals with three others yesterday to finalize roughly $43 million in labor concessions.

Mayor Jerry Sanders said the concessions were the only way to close a $60 million budget deficit without layoffs or shutting libraries and recreation centers. The labor cuts will save $30 million in the city's general fund, and $13 million elsewhere.

Council President Ben Hueso said he hopes the public understands what an “enormous gesture” employees made on their behalf.

“We talk passing taxes, well, this is a tax on our employees,” he said. “You can look at this any which way you like but the fact is we're asking . . . 10,000 people to step up to the plate so that 1.2 million people can have the privilege of visiting our beaches and our parks and our libraries.”

Each employee is being asked to take a 6 percent reduction in pay and benefits beginning July 1, when the next fiscal year begins.

Sanders praised three unions for accepting cuts that many employees found inhospitable.

“In the years to come I think we'll look back on this day as the turning point in our city's struggle to stabilize its finances and as a difficult but responsible decision that led to a brighter future,” he said.

For Jose Perez, a maintenance worker in the street division, the cut will be roughly $200. After alimony and house payments, he doesn't know whether he'll have enough money left for gas or food.

“It's going to be hard for a lot of people,” said Perez, 53, of Bonita.

He said city workers aren't to blame, but rather city management for wasting taxpayer money.

The American Federation of State, County and Municipal Employees Local 127, which represents 1,990 blue-collar workers, is considering suing the city after Sanders refused to continue negotiations.

Instead, the City Council imposed a contract despite only being about $300,000 short of Sanders' goal of $2.4 million in labor concessions for the general fund.

Union head Joan Raymond said she is trying to persuade council members to reopen talks on a two-year deal.

“We would much rather solve this at the table than in the courtroom,” she said.

Police officers also had a contract imposed that included nearly $12 million in reduced pay and benefits. The unions representing white-collar employees, firefighters and deputy city attorneys reached two-year deals with the mayor.

Online: Download term sheets for each union at uniontrib.com/more/documents

LABOR DEALS

White-collar workers: The Municipal Employees Association agreed to have workers accept 6.5 unpaid days off annually, plus take a 3 percent pay cut or lose a 3 percent city match in their 401(k)-style retirement plans.